Answer:
d. more effective in dealing with real shocks than aggregate demand shocks.
Explanation:
Fiscal policy are more effective in dealing with real policy shocks than the monetary policy. The correct answer is d. more effective in dealing with real shocks than aggregate demand shocks.
Answer:
$45,000 Unfavorable
Explanation:
The computation of direct-material quantity variance is shown below:-
Direct Material Quantity Variance = Standard Rate × (Actual Quantity - Standard Quantity Used for Actual Production)
= $7.50 × (246,000 - 40,000 × 6)
= $7.50 × (246,000 - 240,000)
= $7.50 × 6,000
= $45,000 Unfavorable
Therefore for computing the direct-material quantity variance we simply applied the above formula.
The ending balance of prepaid expense can be calculated using the following formula:
Ending balance = Beginning Balance + Debit entries – Credit Entries
We are given the following information:
Beginning Balance = $240,000
Total Debit entries = $110,000
Total Credit entries = $80,000
Hence,
Ending balance = 240000+110000-80000 = 270,000
The ending balance of prepaid expense shall be <u>$270,000
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